PUMP’s 80% Crash: Legal Woes or Just Another Day?

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Solana’s platform, Pump.fun [PUMP], enabled creators to create, deploy, and launch memecoins. Oh, the “creator” era-because who doesn’t want to launch a memecoin that crashes faster than a piñata at a crypto convention? 🎉💸

The number of daily memecoin creations jumped to 71k, with 14 million tokens launched, while the number of created addresses surged to 48k, at press time. 71,000 memecoins launched daily? I’m not sure if that’s a record or just a really, really bad day for investors. 🚀💸

Although the platform created a suitable environment for token creation, it faced criticism as most of these tokens crashed. Ah, the classic “I’ll make a token, then watch it die” routine. 🤷♂️💀

Now, these long-term criticisms and concerns have found their way into a courtroom, as retailers filed a lawsuit against Pump.fun. Because nothing says “I’m a victim” like suing a platform that’s already lost your money. 🎭⚖️

Judge approves an expanded lawsuit against Pump.fun

According to Justia, a federal court approved an expanded class-action lawsuit against PUMP, Solana Labs, and related projects. The judge, ever the supportive friend, gave the lawsuit a big hug and said, “Go forth and sue!” 🤝⚖️

The lawsuit cited liquidity and crypto market imbalances. The case accused the network of enabling insider advantages in memecoin trading. Because nothing says “I’m a good guy” like buying tokens before the public, then selling them at a profit. 🕵️♂️💰

As such, insiders bought tokens at low prices before public trading, driving prices up through the bonding curve. The approach left retail buyers to absorb losses as insiders dumped these tokens. Because why let the little guy win? 🤡💸

The team is accused of creating a system that drove 98.6% of more than 14 million memecoins to collapse to zero, resulting in trader losses estimated between $4 and $5.5 billion. A system so efficient, it’s like a well-oiled money vacuum. 🚫💰

Internal chats revealed coordination with Solana Labs on early token purchases, leading to RICO allegations. And let’s not forget the RICO allegations-because nothing says “I’m a bad guy” like coordinating with Solana Labs. 🤝🚫

Even more troubling, the token PUMP was launched and later shut down, with the top 10 holders controlling 70% of its supply. Because nothing says “democracy” like 10 people holding 70% of the loot. 🤡👑

PUMP plummeted 80% amid legal woes

The ongoing legal battle heavily impacted PUMP. At press time, PUMP plummeted 14% to a low of $0.0018 on daily charts and 80% from its all-time high of $0.009. PUMP’s price is now lower than a crypto investor’s hopes. 💸📉

Over the same period, its market cap dropped to a low of $644 million, reflecting steady capital outflows. Investors, and traders across the spot and futures markets panicked and pulled out capital, fearing more losses. Because nothing says “I’m brave” like fleeing a sinking ship. 🏴‍☠️🌊

According to CoinGlass data, Exchange inflows surged to $24 million compared to $22.9 million in outflows. As a result, Spot Netflow jumped 144.88% to $1.09 million, a clear sign of aggressive spot selling. Investors are fleeing faster than a toddler at a math class. 🏃♂️📉

On the futures side, sellers too dominated, as PUMP recorded $142.91 million in Outflows compared to $139.7 million in Inflows. Because nothing says “I’m confident” like selling futures at a loss. 📉💸

For that reason, Futures Netflow dropped to -$3.21 million, indicating higher contract sales than buyers. Because why buy when you can sell? 🧨📉

These capital flows showed that investors exited the market, leading to the recent price crash. Because nothing says “I’m smart” like exiting before the crash. 🚪📉

More losses ahead?

PUMP faced massive downward pressure as investors across spot and futures panicked and dumped over Pump.fun’s legal woes. Because who needs a plan when you can panic? 🤯💸

As a result, the altcoin’s Relative Strength Index (RSI) plunged into the oversold zone and settled at 28 at press time. Likewise, its Directional Movement Index (DMI) dipped to 11, indicating strong downward momentum. RSI and DMI are now so low, they’re practically in the basement. 🏠📉

When these indicators fall to such low levels, they signal potential for trend continuation. Thus, if sellers continue to offload, PUMP could drop to a new all-time low. Because nothing says “I’m optimistic” like a new low. 🚀📉

For a meaningful trend reversal, PUMP must first reclaim $0.0025 to rebuild buyers’ confidence. For a comeback, PUMP needs to hit $0.0025-because nothing says “recovery” like a tiny price increase. 🚀💸

Final Thoughts 

  • A judge approved an expanded lawsuit against Pump.fun over allegations of insider trading. Because nothing says “I’m a victim” like suing a platform that’s already lost your money. 🎭⚖️
  • PUMP dropped 80% from $0.009 to a record low of $0.0018. Because nothing says “I’m a hero” like a 80% drop. 📉💸

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2025-12-19 14:43